PLANO, Texas--(BUSINESS WIRE)--Plano Petroleum, LLC announced today the preliminary results from its
successful five-well horizontal drilling program in the Cleveland and
Tonkawa tight oil sand reservoirs in Ellis and Roger Mills counties,
Oklahoma, which the company began in mid-2011. Plano recently completed
two horizontal wells in the Cleveland formation that targeted a prolific
lower Cleveland sand member and one horizontal well in the shallower
Tonkawa reservoir. In addition to the three new horizontal producers,
Plano has commenced operations to drill two additional Cleveland wells
on its acreage with production expected to commence from those two wells
in the first quarter of 2012.

Plano completed its first lower Cleveland horizontal well in late July
2011 when the company drilled the Nelwyn #1H-7 in Section 7, T17N, R24W
in Ellis County, Oklahoma. The well’s initial flow rate was 570 barrels
of oil per day (BOPD) and 1.7 million cubic feet of gas per day (MMCFD).
The Nelwyn #1H-7 well produced 31,315 barrels of oil, 10,727 barrels of
natural gas liquids and 69 MMCF of dry gas during its first 90 days of
production for an average production rate of 595 barrels of oil
equivalent per day.

Plano’s second horizontal Cleveland well, the Sharon #1H-18, drilled in
the lower Cleveland sand, is flowing back following a 14-stage hydraulic
fracturing procedure to stimulate production in the tight formation. The
Sharon #1H-18 well is located in Section 18, T17N, R24W in Ellis County.
The well’s initial flow rate was 578 BOPD and 1.1 MMCFD. The company
also reported that the Adeline #1H-4 well, a horizontal Tonkawa producer
located in Section 4, T17N, R22W of Ellis County, flowed at an initial
rate of 199 BOPD and 312 thousand cubic feet of gas per day.

“We are quite pleased with the success of our horizontal drilling
program, especially in the Cleveland formation,” said Cory Richards,
Chief Executive Officer and Chairman. “We believe there is significant,
low risk development potential on our acreage block in the Cleveland and
Tonkawa oil reservoirs, as well as the Cottage Grove and Cherokee oil
reservoirs. We plan to continue adding value to our company by pursuing
these formations.”

Exploration and production companies have drilled more than 1,070
horizontal wells in the Cleveland reservoir in the Texas Panhandle and
western Oklahoma since 1995. Most of the wells have been drilled and
completed in the upper Cleveland reservoir; however, Plano Petroleum and
other producers now are aggressively developing a lower member of the
Cleveland. During the last 18 months, 28 horizontal completions have
been reported in this lower Cleveland play, noted as Marmaton in some
regulatory filings, in southern Ellis County with an average initial
rate of 514 BOPD and 1.3 MMCFD. Additional operators active in this
“play within a play” include EOG Resources, Inc., Chesapeake Energy,
Mewbourne Oil and Primary Natural Resources III, LLC.

The lower Cleveland sand, located at an average depth of 9,400 feet, has
a gross thickness ranging from 50 feet to 120 feet, which makes it an
ideal target for horizontal drilling. The lower Cleveland sand produces
higher average oil rates than the upper Cleveland sand, and there is no
depletion risk from prior production. The geologic limits of the lower
Cleveland sand have yet to be defined by drilling. However, mapping from
deeper subsurface control indicates the best quality lower Cleveland
sand appears to be centered in southern Ellis and northern Roger Mills
counties. Strong results have been reported with open-hole, packer-type
completions and cemented completions. The accompanying map shows the
location of Plano’s acreage block in the lower and upper Cleveland plays.

Plano has more than 13,250 gross acres (8,000 net acres) in this unique
stacked pay area and owns production from horizontal wells in the
Tonkawa, Cottage Grove, upper and lower Cleveland and Cherokee
reservoirs. Plano is the operator of 19 sections with each section
having one to four separate oil reservoirs prospective for horizontal
drilling. The company’s acreage block is 87 percent held by production.

About Plano Petroleum

Plano Petroleum, LLC is a privately held independent oil and gas
producer headquartered in Plano, Texas. The company is focused on
horizontal drilling in several low permeability oil reservoirs in the
Mid-Continent Region.